Business Irish

Wednesday 21 August 2019

Greencoat reports profit in first results since stock market debut

(stock image)
(stock image)
Ellie Donnelly

Ellie Donnelly

Greencoat, Ireland's first stock market-listed renewable energy firm, has reported operating profits of €9.8m in seven months to 30 September.

However pre-tax losses at the company were  €3.87m due to financial expenses of €13.7m.

This marks the first set of results from the company since it listed on the Dublin and London stock market in July, raising €270m in an oversubscribed Initial Public Offering (IPO).

As at 30 September net asset values at the company were €261.6m or 96.9 cent per share.

During the seven month period the company’s operating cash flow was €8.9m.

The company purchased two wind farms with a capacity of 136.7 MW, from which it generated 107.7GWh of electricity, 3pc above budget for the period from acquisition to 30September 2017.

Greencoat is to pay a maiden dividend of 2.61c per share, which is expected to be paid in March 2018 with respect to the period from IPO to 31 December 2017.

"Our assets have performed well over these first seven months, generating slightly more power than budgeted, due to a slightly higher than average wind resource.

We believe that the macroeconomic environment looks increasingly favourable for renewables in Ireland, and we are optimistic about opportunities in Ireland’s secondary wind market," Rónán Murphy, chairman of Greencoat Renewables, said.

Prior to its listing on the stock market, the company raised more than €145m from investors and secured an additional investment of €105m from AIB and the State's Ireland Strategic Investment Fund (ISIF), which provided €76m in funding.

AIB and ISIF provided the combined €105m seed investment in March to bankroll the acquisition by Greencoat Renewables of the two windfarms, the 100MW Knockacummer wind farm in Co Cork, and the 37MW Killhills wind farm in Co Tipperary.

"Given its strong wind resource, and stable and supportive regulatory regime, Ireland is a very attractive market in which to generate renewable energy from wind.

We believe that our disciplined investment model, along with the capital raised in our IPO, positions us competitively in the market to acquire operational assets and in turn, create value for our shareholders," Bertrand Gautier, partner of Greencoat Capital, the investment manager, said.

In July the company said that it expects to be looking abroad for additional acquisitions within two years, and has cited Germany, Finland, Belgium, the Netherlands and France as providing expansion opportunities.

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